LAHORE (February 11 2003) : The Directors of the Muslim Commercial Bank sent a wide smile across the face of the shareholders by recommending a 50 percent (25 percent cash + 25 percent bonus) payout for the year 2002, definitely rare phenomenon in the local banking scene.
The MCB Board of Directors met in Lahore on Saturday February, under the chairmanship of Mian Muhammad Mansha, to approve the financial results for 2002.
The MCB President Mohammad Aftab Manzoor informed the Board that the bank earned Rs 3.2 billion before tax profit in 2002 ie one billion rupees more than that of the previous year (up by 47.6 percent).
The Net profit for the year was 57 percent higher at Rs 1.72 billion than the preceding year.
And the net worth of the bank has soared by 70 percent to Rs 11.7 billion as of end December 2002 as against Rs 6.9 billion at the end of 2001.
Last year the deposits shot up by Rs 28 billion to Rs 182.7 billion from Rs 154.54 billion with total assets exceeding Rs 235 billion as against Rs 187 billion a year ago.
<br> During this period the advances showed a small rise of Rs 78.9 billion against Rs 76.58 billion a year ago.
With all round improvement in MCB operations and the non-performing portfolio coming down due to full provisioning; the Capital Adequacy ratio was a robust 16.5 percent as against 9.22 percent of the previous year.
The return on the assets increased to 0.82 percent from 0.61 percent and the return on equity was 30.77 percent as against 23.4 percent in 2001.
With such impressive results, the MCB Directors opted to oblige the bank shareholders for the third time with 15 percent bonus.
MCB had earlier declared a 10 percent bonus to shareholders in March 2002, followed by an interim cash dividend of 25 percent in September 2002.
The Directors appreciated the good work done by President Muhammad Aftab Manzoor and his management team throughout the network of 1000 branches.
The timely investment in 150 ATMs has started producing results and further improvement in earnings is expected with the introduction of Debit Cards in March 2003 and the conversion of ATM cards.
According to the financial results of the year 2002, after tax earning of Muslim Commercial Bank was Rs 6.52 per share (as compared to Rs 4.16 in 2001).
PACRA, (an affiliate of Fitch Ratings Limited, London), and the leading Rating Agency of Pakistan has given Muslim Commercial Bank short term rating of A1+ and a long term rating of AA which is one of the best for any bank in Pakistan.
The financial results of the company are as follows.
===================================================================== 2002 2001 (Rs in million) (Rs in million) ===================================================================== Mark-up received 15,385.87 17,033.23 Commission, Exchange Brokerage & Other Income 2,590.16 2,200.63 Total Income 17,976.03 19,233.86 Profit paid on Deposits, Borrowing etc 6,074.68 7,544.90 Operating Expenditure 8,800.33 9,587.78 Total Expenditure 14,875.01 17,132.68 Net Profit for the year (Before Tax) 3,101.02 2,101.18 Provision for Taxation - Current 1,362.43 993.00 Net Profit for the year (After Tax) 1,738.59 1,108.18 Unappropriated Profit B/F 283.94 3.18 Transfer from Surplus on Revaluation of Fixed Assets 255.67 - Profit available for appropriation 2,278.20 1,111.36 Appropriated as under: Transfer to: - Statutory Reserve 347.72 221.64 - Issue of Bonus Shares Interim 10% (2001: nil) 242.31 - - Reserve for issue of Bonus Shares 15% (2001: nil) 399.82 - - Interim Cash Dividend 25% (2001: 12.5%) 666.36 302.89 - Proposed Cash Dividend nil% (2001: 12.5%) - 302.89 Balance C.F. 621.99 283.94 ===================================================================== FINANCIAL RATIOS 2002 2001 ===================================================================== Return on Assets (after tax) 0.82% 0.61% Return on Equity (after tax) 30.77% 23.40% Administrative Cost (one offs) 3.59% 4.25% Non Interest Income to Total Income 14.41% 11.44% Total Expenses to Total Income 82.75% 89.08% Gross Loans to Total Deposits 46.60% 53.60% Liquid Assets Ratio 54.07% 44.84% Loan Loss Provision to Non-Performing Loans 51.65% 46.55% Book Value per share 23.69 20.58 Earning per share 6.52 4.57 Earning per share Diluted 6.52 4.16 Price Earning Ratio 5.11 4.11 Capital Adequacy Ratio 16.50% 9.22% =====================================================================